Tail Spend Management
Provided by Shield Procurement Services
Optimising Low-Value Procurement for Maximum Efficiency
Managing low-value, high-volume procurement—commonly referred to as tail spend— can be time-consuming, costly, and inefficient. At Shield Pro Solutions, we help organisations in the defence, cruise, ferry, and commercial marine sectors take control of their fragmented, untracked, and ad-hoc purchases to reduce costs, consolidate suppliers, and enhance procurement efficiency.
Why Tail Spend Management Matters
Many businesses find that 20% of total procurement accounts for 80% of suppliers, leading to:
How Shield Procurement Solutions Can Help
Who we work with
Defence Contractors & Naval Projects
Managing non-core procurement while ensuring compliance with strict industry regulations.
Cruise Lines & Ferry Operators
Simplifying procurement for interior refurbishments, onboard supplies, insulation, and operational equipment to enhance efficiency and passenger experience.
Ship Repair & Maintenance Providers
Consolidating indirect procurement for insulation, engineering spares, and essential ship repair materials to reduce delays and costs.
Get in Touch to learn more about our Tail Spend Management services.
FAQ – Tail Spend Management
Tail Spend Management refers to the process of controlling and optimising low-value, high-volume purchases that make up the “tail” of an organisation’s procurement spend. These purchases often account for a small percentage of total spend but involve a large number of transactions and suppliers, leading to inefficiencies, hidden costs, and compliance risks.
Unmanaged tail spend can result in high administrative costs, maverick spending, supplier fragmentation, and missed cost-saving opportunities. By implementing effective Tail Spend Management, organisations can streamline procurement, reduce costs, enhance compliance, and improve supplier relationships.
Businesses can manage tail spend by consolidating suppliers, automating procurement processes, leveraging data analytics for better visibility, implementing spend controls, and working with a Procurement as a Service (PaaS) provider to optimise sourcing strategies.
Outsourcing tail spend management to a specialised provider like Shield Pro Solutions helps businesses reduce procurement workload, achieve better pricing, improve compliance, and enhance efficiency. With expert support, companies can focus on core operations while ensuring their low-value purchases are strategically managed.
